10 ms·
Sequoia is splitting into three VC firms
- say_it_as_it_is 3y agoThe partners aren't team players after all, eh?
- fakedang 3y agoFrom what I know, the firms were more or less independent anyways. At least going by the experience of friends in SeqIndia.
- alephnerd 3y agoSame with Sequoia China for the past few years as well.
- mindentropy 3y agoHow good is investing by SeqIndia? Their website says they have lot of unicorn exits.
- fakedang 3y agoThey are the biggest VC player in India and South East Asia currently, but the companies they invest in are mixed. For example, you have household names like Zomato and Meesho in one hand. On the other hand, many of their companies like BharatPe and Zilingo (incidentally started by an ex-SeqIndia employee) have been caught carrying out fraud and SeqIndia apparently had some responsibility in obfuscating facts.
- deleted 3y ago[deleted]
- moneywoes 3y agoWhich fund will have the best performance the next 20 years? My guess south east Asia
- pxue 3y agoI'm sad that LATAM is still lagging in terms of VC investment. Brazil+Mexico consumers should rival SEA.
- busterarm 3y agoThere are still too many investors who remember the debt crisis in the 80s and Argentina's more recent crisis and subsequently treat LATAM like it has the plague. That and a history of various governments seizing assets for the state. It also doesn't help their situation any that LATAM is hot for crypto assets either.
- prottog 3y agoIt's a good example of why a stable government, strong property rights, and rule of law are necessary (but not sufficient) conditions for long-term wealth development.
- digging 3y agoI don't really agree with this overall statement (broad as it is). Rule of law is vague, or it has a specific meaning I don't know of, but high levels of wealth building coincide with illegal activity and/or (just as bad for stability) laws written by corporations to excuse their own behavior. If we're comparing these nations to historically capitalist nations, we're comparing two runners in a race where one of them shot the other with a gun, so it's just not reasonable to say that these countries are inherently doing something wrong for prosperity.
- doxeddaily 3y ago> Rule of law is vague Not really. It means functioning courts that are fair. It means you don't pay people off to get your way. > so it's just not reasonable to say that these countries are inherently doing something wrong for prosperity. Nowhere in Latin America has there ever been the kind of stability you would find in a place like the US, Canada, Britain etc.
- SkyMarshal 3y agoTLDR: Main reason for the split is conflicts between portfolio companies in different regions (eg Stripe in the US, vs Airwallex in China, vs unnamed in India all going global and competing with each other), and increasing complexity of centralized back-office regulatory compliance operations across these different regions.
- hgsgm 3y agoWhy not merge the companies?
- SkyMarshal 3y agoThe already were one company.
- kalupa 3y agoI suspect the commmenter meant to merge the fin-tech companies ... Although, I'm not sure how that would even work, given international technology competitiveness being intertwined with politics
- SkyMarshal 3y agoYeah, and the founders most likely wouldn’t be interested in that. Merging systems, sharing power, reconciling differences in vision, diluting stake all impossibly complicate option.
- paxys 3y agoThat isn't for investors to decide.
- cj 3y agoWhat I found interesting (in the CNBC article) was that the partners will no longer cross-invest in each other's funds. The 3 units were operating independently already, but there was cross-over in partners from 1 division investing in funds from a different division. After the split, the article explicitly said the partners will no longer invest their own money in the other entity funds. Feels like it's a move motivated by regulation/compliance.
- OrvalWintermute 3y agoSequoia Shanghai Sequoia Beijing Sequoia Hong Kong ;)
- dan-rocks 3y agoIf we follow International Olympic Committee standards, but reversed: Sequoia Western Taiwan
- ksec 3y agoOk, the most important question, which one of the three invested in Sam Bankman-Fried?
- sequoia 3y agoOff topic but I really wish headlines like this would refer to the firm as "Sequoia Capital." Reading this headline is a bit jarring for me.
- blueyes 3y agoThey got there before you...
- Frummy 3y agoWe the forum will consider this in the future in order to maintain our strong diplomatic alliance with the user in question.
- LeifCarrotson 3y agoSurprise! Forbes says you're pivoting from programming to VC. It's too late to raise objections about the size of your investment portfolio, the article is already public. And then you're going to split your sole proprietorship into three units, good luck with that!
- lordsfaer 3y agoAgreed, at least it wasn't "Sequoia splitting into three branches"
- slugiscool99 3y agoThink this will make it easier for them to invest in strategically important technologies (like AI) in adversarial countries (China) without getting pushback like they have been
- Dudester230602 3y agoAI founder playing Honor of Kings during VC calls? That could work.